Credit Card Companies Settle Swipe Fee Suit For $6B

Visa, MasterCard and some of the largest banks in the country have agreed to pay more than $6 billion to settle a lawsuit that claimed they conspired to fix credit card payment fees. The suit was brought on behalf of seven million merchants. The agreement could have wide-ranging implications for retailers and consumers. Steve Henn talks to Melissa Block.» E-Mail This» Add to Del.icio.us

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Credit card companies Visa and MasterCard along with major banks have agreed to pay several billion dollars to settle a lawsuit brought by retailers. The deal is one of the largest anti-trust settlements in history. The retailers claimed that Visa, MasterCard and the banks conspired to fix the fees that stores pay to accept credit and debit cards. NPR's Wendy Kaufman reports.

A federal consumer watchdog says some credit and debit card payment companies are breaking rules it created to protect retailers, which in turn could be costing Canadians more money.
The Financial Consumer Agency of Canada issued a warning to the industry on Wednesday that it will not tolerate payment companies who mislead merchants into paying hidden fees or lock them into confusing contracts.

OTTAWA — The federal Opposition on Monday called on the Harper government to stop credit card companies from charging businesses higher fees for using premium cards.
The call came as a federal competition tribunal prepared to rule on whether Visa and MasterCard are engaging in anti-competitive behaviour.
Small business groups hope the tribunal will recommend that Ottawa forbid the major credit card companies from forcing retailers to accept cards that carry higher payment processing fees.